Inheritance Tax Receipts jump £400m to £6.8bn in the months from April 2023 to February 2024

The amount HMRC levies from estates increased by £400m from April 2023 to February 2024.

An increase in house prices has dragged more people into paying the tax which totalled £6.8bn during the period. Increasing house prices and a freeze in the threshold resulted in 31,000 families paying the tax last year.

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Despite much speculation in the run-up to Jeremy Hunt’s budget, there were no changes to IHT, which was seen as an opportunity missed. It is likely to be the last Conservative budget for some time, and it’s unlikely Labour will increase the thresholds. 

However, Inheritance Tax is considered an optional tax by many because individuals are afforded a range of products and schemes that provide IHT relief.

These include gifting, trusts and investment schemes including SEIS and EIS. 

Ben Alcock, Chartered Financial Planner at Continuum, said: “With inheritance tax receipts to HMRC continuing to rise with no sign of slowing down, now more than ever families need to be planning for their future accordingly.

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“Proper estate planning can make sure that your money goes to your loved ones, without a sizeable deduction from the taxman. 

“There are many tax-efficient vehicles that can be used as estate planning tools. A good independent financial adviser can help you navigate through the ins and outs of inheritance tax planning without the jargon, so you can find the right combination for your situation.”

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